by Geoff McCabe, co-founder of The Divi Project
One of the Divi Project’s most innovative features is what we call “Lottery Blocks.”
It’s not actually a lottery, because users don’t need to purchase tickets, but this name helps to understand it. Technically, it would best be described as a “Randomized staking bonus.”
Once per week, eleven lucky stakers are chosen at random, and the winning funds are deposited directly into their wallet.
To qualify, a user must be actively staking a minimum of 10,000 Divi, and earn a stake during that week. Every time you earn a stake, you get one lottery ticket.
The more you have staked, the more likely you are to get a lottery bonus because you’ll probably earn more stakes.
Eleven “Winners” as follows:
- 504,000 DIVI is the total amount paid out each week
- 50% is allocated to a single big winner (252,000 DIVI)
- 5% is allocated to 10 secondary winners (25,200 DIVI)
If the value of DIVI grows, the lottery bonus will grow too, possibly making it quite a large amount. For example, if DIVI was US$0.10 then the bonus would be over US$50,000 worth of DIVI each week. For many people, this is a life-changing amount.
Each week the blockchain produces a “superblock” that has these extra awards in it. In our original whitepaper, we had planned to have block rewards of 1250 DIVI per block, with 50 of this added to a lottery block fund. However, we found it was simpler to reduce that to 1200. That means the missing 50 DIVI per block for a week adds up to 504,000 DIVI.
The Divi Lottery is Like a Race
One interesting thing that most people don’t know is that you may have already won the lottery and just don’t know it yet. Whenever you earn a stake, you get a “ticket” that compares its hash to the tickets before. So at any moment, there are already eleven highest hash numbers that are currently leading this race.
This also means that you don’t need to have your wallet actively staking at the time the eleven bonuses are paid out.
What Value Does the Lottery Give to the Divi Ecosystem?
The goal with this is not just to reward our stakers, but to try to get more people to keep their DIVI in the network and support it with more staked wallets. Keeping DIVI staked and off the exchanges is better in many ways such as adding stability to our price, which is a major requirement for mass adoption of a cryptocurrency.
A key concept is what I call “holdability.” In the future, all cryptos will be easily swapped for other cryptocurrencies with the push of a button. So why will people choose to hold DIVI rather than other cryptocurrencies? The lottery creates a fun incentive for people to hold DIVI rather than swapping out to fiat, a stablecoin, or BTC.
For more information, visit our website: www.diviproject.org
Do Masternodes participate in the lottery?
No. Masternode wallets don’t qualify, because they aren’t staking. You can stake your Masternode earnings in your wallet and then if you earn a stake, you could get the magic ticket that way. Most Masternode holders are doing this, since having extra DIVI in your Masternode address doesn’t help you earn more unless you’re staking too.
Is this gambling?
No, because although you need DIVI to participate, you don’t have to invest or risk anything to win. You’re automatically entered by earning stakes and this is simply a novel way to reward people who are supporting the Divi network.
What if your DIVI is on an exchange?
You can’t participate in the lottery with DIVI on an exchange. Instead, the exchange may get the lottery bonus if they’re staking your coins, and would be unlikely to give them to you. This is another good reason not to keep DIVI on an exchange for long.